among investor circles. Vacant land can seem like a poor investment choice to both real estate experts and novices. This likely stems from raw land’s lower price points as well as a genu- ine lack of understanding about what rural, unimproved land can be used for. Perhaps you had a similar reac- tion when you heard the term land investing. Vacant land includes the forests, deserts, and bucolic grasslands that dot our large country. To many people, land is not just a development opportunity, it is a way to spend more time with family or nature; it is pride of ownership and the opportunity to build a legacy. There are myriad reasons why people buy vacant land, which means there are far more buyers out there than you may imagine. And the great thing about rural va- cant land is that it can be more afford- able than other investment options. So, if you are a savvy investor, you can make a decent profit trading in these parcels. Here are a few facts about investing in land: 1. It’s Affordable Ironically, one of the benefits of rural vacant land is the price point. Yes, you won’t sell your properties for hundreds of thousands of dollars, but you can also acquire properties for very little. There are even areas in the U.S. where you can buy vacant land for under $1,000, making land a very accessible asset for new investors. If you are already a seasoned real estate investor, it is also easy to justify setting aside a small portion of funds to play around with land at these prices.
2. It Has Great Returns Sure, no one deal will make you millions, but you can get returns of up to six times with a good system and a strong understanding of how to market land. Of course, this means you must first understand the asset class and know how to find cheap land. But you do need to know how to correctly value your land and com- plete your proper due diligence, so it may make sense to invest in training before you take the plunge.
3. It’s LowRisk There is a common misconcep- tion that rural vacant land is a risky investment. This is because it does not typically have high rates of appreciation, but this only means that the buy and hold strategy is risky. If you focus on flipping land and keeping your hold periods short, the risk can be very low. Especially if you buy at the right price, offer attractive owner financ - ing terms, and avoid higher-value
70 | think realty magazine :: september 2020
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